Legal charge

[munchue]

I owe a Law firm some money after I lost my job a year ago. They applied a legal charge on my property. Today I got a call from a debt collector to say I need to pay the money or they will get my employer to deduct the money from my salary. When I asked about the legal charge already in place she told me that it still stands and on top of this they have the right to exercise any action as they deem, fit to recover the money. She told me that the money i owed this law firm is now accrueing interest since they transfered the case to her. I absent mindedly agreed to paying £50.00 per month, but after I gave this some thought I rang her again to clarify things. she then disclosed to me that the firm has gone into liquidation, hence they were going to override the court so they recover the money. Is this allowed. Shouldnt they have written to me to inform me about the liquidation and possible discuss ways of me paying them their money rather than passing me over to debt collectors. Should I be charged interest after the court judgement was put in place. I am confused and scared. Please help.

[danni]

Hi
Check the Land Registry Office for details maybe as it would go through them as to any change allowed or they would know procedure
Well done you are taking action to resolve it!

[Craftypig]

Can the company that is chasing you for money provide you with a written contract/agreement that you have signed between themselves and you? Tell them that you would be happy to come to some kind of payment arrangement once they have provided you with a copy of any such document. If the original law firm has "sold the debt on" the company now chasing you for money will use scare tactics in order to get back what they paid to the law firm for your debt. Oldest trick in the book!!

The site below can give you more information on these kind of people and how to tackle them head on.

http://www.lawfulrebellion.org

[themas]

1. The creditor (or a debt collector acting for them) can pursue more than one method of enforcement, so they can try to get the money from you as well as having the charge.

2. In some circumstances interest can be added to the debt after the Court judgement (CCJ) has been made, at an exorbitant rate of 8% pa. I think the debt has to be above £5K for this to apply, & there may have to be other conditions complied with.

3. You need to find out who the creditor now is - it might be whoever the liquidator is for the original firm, or they may have sold the debt on.

4. Don't ignore this. If you do, they could go to Court and ask for an order for sale of your house to recover their money.

[chrissa1]

I agree with all of the three posters above. You Must come to an arrangement with the new creditor and stick to it. I've been in this situation myself in the past and know what it's like. Keep strong.